The following information concerns production in the Baking Department for March
ID: 2406405 • Letter: T
Question
The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.
ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Mar. 1 Bal., 4,500 units, 4/5 completed 9,540 31 Direct materials, 81,000 units 129,600 139,140 31 Direct labor 36,400 175,540 31 Factory overhead 20,468 196,008 31 Goods finished, 82,200 units 188,880 7,128 31 Bal. ? units, 4/5 completed 7,128Explanation / Answer
Answers
STEP 1
Reconciliation of Units
Units
% already completed
% completed this period
Material
Conversion cost
Material
Conversion cost
Beginning WIP
4,500
100%
80%
0%
20%
Units introduced
81,000
Total units to be accounted for
85,500
Completed and Transferred unit
82,200
0%
0%
100%
100%
Ending WIP
3,300
0%
0%
100%
80%
STEP 2
Equivalent Units
Total Units
Materials
Conversion Cost
Units Transferred:
% completed this period
Equivalent Units
% completed this period
Equivalent Units
From WIP
4,500
0%
-
20%
900
From units started
77,700
100%
77,700
100%
77,700
Total
82,200
77,700
78,600
Total Units
Materials
Conversion Cost
Ending WIP
3300
% completed this period
Equivalent Units
% completed this period
Equivalent Units
Total
3,300
100%
3,300
80%
2,640
Total EUP
85,500
81,000
81,240
STEP 3
Cost per Equivalent Units AND Cost to be accounted for
Materials
Conversion Cost
TOTAL
Cost incurred in Current Period
$ 129,600.00
$ 56,868.00
$ 186,468.00
Total Equivalent Units
81,000.00
81,240.00
Cost per Equivalent Units
$ 1.60
$ 0.70
Cost of Beginning WIP
$ 9,540.00
$ -
$ 9,540.00
Total cost to be accounted for
$ 196,008.00
STEP 4
Cost report [Including Reconciliation]
Cost of
Units Transferred
82,200.00
units
Equivalent Units [Step 2]
Cost per Equivalent Units [Step 3]
Cost of Units Transferred
TOTAL
A
Materials
77,700
$ 1.60
$ 124,320.00
B
Conversion Costs
78,600
$ 0.70
$ 55,020.00
C=A+B
Total
$ 179,340.00
D
Cost of Beginning WIP
$ 9,540.00
E=C+D
Total Cost of Units transferred
$ 188,880.00
Cost of
Ending WIP
3,300.00
units
Equivalent Units [Step 2]
Cost per Equivalent Units [Step 3]
Cost of Ending WIP
TOTAL
F
Materials
3,300
$ 1.60
$ 5,280.00
G
Conversion Costs
2,640.00
$ 0.70
$ 1,848.00
H = F + G
Total Cost of Ending WIP
$ 7,128.00
I = E + H
Total Cost accounted for
$ 196,008.00
>Direct material cost per Equivalent Unit = $ 1.60 [Step 3]
>Conversion cost per Equivalent Unit = $ 0.70 [Step 3]
>Cost of Beginning WIP completed during March = 900 Equivalent Units for Conversion cost x $ 0.70 = $ 630 [Step 2 and 3]
>Cost of Units started and completed = 77,700 equivalent units x $(1.6 + 0.7) = 77700 x 2.3 = $ 178,710 [Step 2 and 3]
>Cost of Ending WIP = $ 7,128 [Step 4]
STEP 1
Reconciliation of Units
Units
% already completed
% completed this period
Material
Conversion cost
Material
Conversion cost
Beginning WIP
4,500
100%
80%
0%
20%
Units introduced
81,000
Total units to be accounted for
85,500
Completed and Transferred unit
82,200
0%
0%
100%
100%
Ending WIP
3,300
0%
0%
100%
80%
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